What Is a Chatbot? | Definition, Types & Benefits
A chatbot is a computer program designed to simulate human conversation. Chatbots serve a variety of functions in society, allowing humans to interact with digital devices as if they were people. Many—but not all—are powered by artificial intelligence.
- Use ChatGPT to get information or generate content
- Ask Siri or Alexa to tell you the weather or search for something online
- Call a customer service number and tell an automated system why you’re calling so that it can direct you to the correct department
What is a chatbot?
A chatbot is any computer program (software, apps, etc.) that processes and replicates human conversation in either written or spoken form. Humans can communicate with chatbots as if they were real people, which can make the process of acquiring information or completing tasks feel more natural.
Some chatbots are relatively simple and can answer simple queries with limited responses. Others, like AI chatbots, are sophisticated and capable of taking on complex and personalized tasks.
One of the first chatbots was ELIZA, developed in 1966 by Joseph Weizenbaum. ELIZA was created to simulate conversation and give users the impression that they were speaking with another human. Other early examples were phone trees and interactive FAQ programs, which asked users to select options to progress toward the right department or resource to answer their question.
Chatbots have come a long way since then and continue to evolve today.
How do chatbots work?
Not all chatbots work the same way, but many contemporary examples rely on some combination of machine learning, natural language processing (NLP), and automated rules. To understand how chatbots work, it’s important to have a basic understanding of these concepts:
- Machine learning is an AI technique that allows chatbots to improve their responses over time through data analysis and pattern recognition.
- NLP enables chatbots to “understand” human language—including syntax, semantics, and intent—and provide accurate responses to human prompts. For example, with NLP, a chatbot can determine parts of speech (e.g., noun, verb, adjective) and through pattern recognition analysis, predict how to use them to generate natural-sounding language.
- Automated rules are predefined instructions that determine how the chatbot responds to user inputs. They work using pattern recognition, predefined responses, and decision trees.
The chatbot detects the phrase “store hours” and returns a pre-defined response: “Our store is open from 9 AM to 7 PM, Monday to Friday.”
Many chatbots fall into the category of conversational AI; enabled by machine learning and NLP, they interact with users through conversation. Contrast this idea with something like an AI Detector, which is AI but not conversational. AI detectors work by analyzing text you’ve fed it and displaying the probability it was written by AI, but they don’t engage in a dialogue with you.
- Not all chatbots rely on AI.
- Not all AIs are chatbots.
Below are examples of how different types of chatbots work.
Rule-based chatbots
Rule-based chatbots have the simplest engineering and rely on automated rules and structured workflows. Users typically interact with them by selecting menu options, and the chatbot then follows a decision tree to guide users towards the right information. They cannot understand context or variations in phrasing.
Customer support automation often relies on rule-based chatbots to assist human agents. A support team will usually analyze which questions are most frequent and configure their chatbots to address those queries, saving them time and manpower.
You might also interact with rule-based chatbots when booking appointments or checking the status of an order online.
While visiting their website, a chatbot pops up asking if she needs help with anything, and one of the options is “book a demo.” She clicks it, and the chatbot asks for her email, name, and phone number. After entering that info, the chatbot then provides a calendar where Sara can select a time and day that suits her for the demo meeting.
Keyword-based chatbots
Keyword-based chatbots work similarly to rule-based chatbots but scan user input for specific keywords and use if/then logic to return appropriate results (e.g., if this keyword is mentioned, then return this content). Customer service chatbots and integrated voice response (IVR) are often keyword-based.
Instead of providing fixed options for the user to choose from, a keyword-based chatbot might ask the open-ended question “What can I help you with today?”, allowing more flexibility in the reply.
The bank’s IVR picks up and asks him to verify his name, surname, and date of birth. After he correctly does that, it asks him how it can help him today. Andoni says “I want to check my balance.”
The IVR recognizes the keywords “check my balance,” so it accesses his information and uses text-to-speech technology to tell him how much money he has in his account.
AI chatbots
AI chatbots, also called conversational AI, use NLP and machine learning models (including large language models) to dynamically understand and respond to human conversations.
AI chatbots may be generative AI, meaning they are capable of generating original content. They can also be non-generative, in which case they do not generate new content but rely on often massive datasets to return information. For example, ChatGPT is generative, but Alexa is not.
There are a few qualities that separate AI chatbots from simpler rule- or keyword-based ones:
- They can analyze the context, tone, and intent of user input.
- They learn from past interactions, improving their responses over time.
- They can generate human-like responses instead of using predefined scripts.
Gemini’s reply: Imagine I’m a super-smart parrot, but instead of feathers, I’m made of computer code!
Here’s how I work:
- I read a LOT of books: I’ve read tons of websites, stories, and information. It’s like I have a giant library in my brain!
- I learn patterns: When you ask me a question, I look through all the information I’ve read and try to find patterns. It’s like finding matching puzzle pieces.
- I put words together: Based on the patterns I find, I put words together to give you an answer. Sometimes, I can even write stories or poems!
- I get better with practice: The more questions you ask me, the more I learn, and the better I get at answering. It’s like practicing a sport!
So, when you ask me something, I use all my “reading” and “pattern-finding” to give you the best answer I can. I’m like a helpful friend who knows a lot of things!
How Gemini replied: Gemini used NLP to understand what the prompt was asking for and who the audience was. It then used NLP and machine learning to generate a response with coherent grammar and spelling while using abstraction, analogy, and metaphor that a child could understand.
Virtual agents
Virtual agents are typically designed for specific industries and capable of handling complex tasks beyond simple Q&A. They are a further evolution of AI chatbots and sometimes incorporate robotic process automation (RPA) to automate tasks.
A few things virtual agents can do are:
- Integrate with other systems to access and update real-time data (e.g., checking the status of your Internet and opening tickets if there are any issues)
- Handle multi-step processes (e.g., diagnosing health issues)
- Perform actions on behalf of users (e.g., processing a refund)
Maria: I have a sore throat and a fever. What should I do?
Virtual Agent: I’m sorry you’re not feeling well, Maria. Based on your symptoms, you might have a viral infection. Would you like advice on managing symptoms at home, or do you want to schedule a telehealth appointment?
Maria: Home remedies first.
Virtual Agent: You should drink warm fluids like tea or broth, gargle with salt water, and take over-the-counter pain relievers like ibuprofen. If symptoms persist or worsen, consider seeing a doctor. Would you like me to check for appointments?
Maria: Yes, please book an appointment.
Virtual Agent: The next available telehealth appointment is tomorrow at 10 AM. Would you like to confirm?
Maria: Yes, confirm it.
Through this conversation, the virtual agent was able to provide Maria with actionable advice she can use immediately and book her an appointment for tomorrow.
Chatbot use cases
Chatbots are used for providing solutions across diverse industries. Below are some common use cases.
| Industry | Use case |
|---|---|
| Customer support | Answering FAQs, troubleshooting technical issues, processing customer feedback |
| Healthcare | Scheduling appointments, providing medication reminders, triaging patient symptoms, answering health-related questions |
| Marketing | Generating leads, providing product information, running interactive campaigns |
| Finance | Checking account balances, processing transactions, providing investment advice, fraud detection alerts |
| Education | Providing course information, answering student questions, offering personalized learning support, assisting in brainstorming and research |
| Retail | Assisting with product selection, processing orders, providing personalized recommendations, handling customer complaints |
| Travel and Hospitality | Booking reservations, providing travel recommendations, handling check-in/check-out, providing information about local attractions. |
| Logistics | Tracking shipments, providing delivery updates, managing inventory, answering questions about shipping costs. |
| Real Estate | Scheduling property viewings, providing information about listings, generating leads. |
| Utilities | Answering questions about billing, reporting outages, scheduling maintenance. |
| Entertainment | Providing showtimes and ticket information, running interactive games and quizzes, providing personalized recommendations for movies and music |
| Job searches | Filtering job postings, editing information for a resume, assisting in the drafting of a cover letter |
| Personal | Looking up the weather, recommending and playing music, finding restaurants nearby and making reservations |
Benefits and limitations of chatbots
Chatbots offer a wide range of benefits for both businesses and customers. Some of the benefits of using chatbots include:
- 24/7 availability: Unlike human agents, chatbots can provide support and assistance at any time, improving customer satisfaction.
- Instant responses: Chatbots often respond faster than humans, especially in high-demand situations, and they can handle multiple queries simultaneously, which reduces wait times for customers.
- Cost savings: They can reduce the need for large customer support teams and automate repetitive tasks, lowering costs and freeing employees up for higher-value work.
- Data collection and analysis: Chatbots capture valuable user data for analysis, helping businesses refine services, proactively address common customer issues, qualify leads, and target marketing campaigns.
- Personalization and engagement: They can personalize interactions based on user data and past behavior to keep users engaged.
- Multilingual support: Chatbots can communicate in many languages, expanding accessibility around the world.
- Education support: Chatbots can help students learn new subjects, practice languages, or work through complex topics. They can also assist in studying for exams or in brainstorming, editing, and proofreading writing.
- Creative applications: Creatives can brainstorm with chatbots, leading to new ideas or angles of self-expression. They can also analyze writing and images to help artists refine their work.
- Health and wellness: Chatbots can help people with fitness and diet plans, mindfulness exercises, and access to mental health resources. Chatbots may also help people with social anxiety practice conversation.
- Accessibility: The text-to-speech and speech-to-text capabilities of chatbots allow people with accessibility issues to communicate more seamlessly.
Despite the many benefits chatbots provide, they have some limitations. These will likely change as chatbots continue to evolve and the field of AI ethics keeps developing:
- Hallucinations: Just like humans, AI chatbots can make mistakes. Hallucinations are when AI generates false, nonsensical, or unnatural information. For example, if you ask an AI chatbot to cite sources, it may include citations but not to credible sources.
- Lack of emotional intelligence: Although some AI chatbots are already very good at simulating tone, they don’t yet understand emotions the way humans do.
- Limited understanding of context: Chatbots may have difficulty understanding the full context of a conversation, especially when dealing with ambiguous language, idioms, or slang. This is particularly true when interacting with them in a less common language.
- Dependence on training data: If training data is biased or incomplete, the chatbot’s responses may also be biased or inaccurate.
- User frustration: Some people still get frustrated when interacting with a chatbot, especially if it cannot resolve their issue.
Frequently asked questions about AI chatbots
- How do computer scientists make AI chatbots sound so human-like?
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Computer scientists make AI chatbots sound human-like through various technologies, mainly natural language processing (NLP) and machine learning.
A chatbot is a computer program designed to simulate human conversation. AI chatbots can learn from their past experiences in order to continuously improve.
They can also vary the language they use, which leads to more human-like answers. For example, instead of always saying “I can help with that,” an AI chatbot could also say “I can tackle that” or “I can take a shot at that.”
Remember that not all AIs are chatbots. For example, QuillBot’s Grammar Checker is powered by AI, but it is not a chatbot.
- What is a chatbot in education?
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A chatbot in education is a conversational computer program that helps students, teachers, and staff with learning and administrative tasks.
A chatbot is any computer program, often powered by AI, that simulates human conversation.
In education, chatbots might offer personalized learning and extra support, help students practice a foreign language, assist in brainstorming and proofreading, and automate administrative and organizational tasks.
While not a chatbot, another type of technology used in education is an AI Detector, which helps teachers decide if student work was written by AI.
- Are chatbots AI?
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Some chatbots are AI, but not all. A chatbot is any computer program designed to simulate human conversation.
Some of these are powered by AI and can tackle various, complex tasks. Other chatbots are rule- or keyword-based and have a more limited range of capabilities.
Likewise, not all AI are chatbots. For example, QuillBot’s Humanizer is a type of AI, but it is not a chatbot, as you do not have a conversation with it.
- What are some examples of chatbots?
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Some examples of chatbots are:
- ChatGPT
- Gemini
- Claude
- Alexa
- Siri
- Cleo
- Zendesk’s Answer Bot
- Bank of America’s Erica
- Duolingo Max
A chatbot is any computer program designed to simulate human conversation. They are often, but not always, powered by AI.
Remember not all AIs are chatbots. For example, QuillBot’s Translator is a type of AI, but it is not a chatbot, as you do not have a conversation with it.
